President Donald Trump on Monday renewed his push for public companies to report financial results semi‑annually rather than every quarter, calling on Securities and Exchange Commission regulators to loosen long‑standing disclosure requirements.
In a post on Truth Social, Trump argued that shifting to a twice‑a‑year reporting schedule would "save money, and allow managers to focus on properly running their companies." He contrasted U.S. practices with what he described as a longer time horizon in China, writing: "Did you ever hear the statement that, 'China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis???' Not good!!!"
Proponents of the change say less frequent reporting could reduce regulatory burden and encourage more companies to list publicly in the United States, potentially reversing a multi‑year decline in the number of publicly traded firms. The Long‑Term Stock Exchange, a trading venue that markets itself as catering to companies focused on long‑term value, said last week it intends to ask the SEC to permit semi‑annual reporting, the Wall Street Journal reported.
Critics, including many investors and shareholder advocates, say quarterly reporting is a critical source of transparency and more timely information for markets. They argue reducing the frequency of mandated disclosures could increase information asymmetry, raise the risk of market volatility and diminish accountability to shareholders.
The United States has required public companies to file quarterly financial reports since 1970. Trump pressed for similar changes during his first term in the White House, but no regulatory overhaul occurred. The current leadership of the SEC, including Chair Paul Atkins, has signaled skepticism about disclosure requirements that companies view as burdensome, according to people familiar with agency views cited in recent coverage.
High‑profile investors have expressed reservations about quarterly guidance, in particular. Veteran investor Warren Buffett and JPMorgan Chase Chief Executive Jamie Dimon have questioned whether a fixation on short‑term quarterly results undermines long‑term strategy, a criticism supporters of reduced reporting frequency cite in arguing for reform.
Any formal proposal to loosen quarterly reporting requirements would require regulatory action by the SEC and is likely to draw opposition from institutional investors, some board members and analysts who rely on regular financial updates. The SEC did not immediately respond to a request for comment.
Shifting to semi‑annual reporting would also align the United States more closely with reporting cadences in the United Kingdom and several European Union countries, proponents say. Opponents contend that differences in market structure and investor protections make such comparisons imperfect, and they point to rapid information flows and complex capital markets in the U.S. as reasons to retain frequent disclosures.
The debate highlights a broader tension between reducing compliance costs for companies and maintaining investor protections that many see as central to efficient and fair markets. Any rule‑making process at the SEC would include public comment periods and likely face legal and political scrutiny from stakeholders across Wall Street and corporate America.